John & Julie Smith
$100,000 sales price
$88,000 loan amount
4.50% mortgage interest rate
Amortization = 30 years
Primary borrower annual salary = $51,240
Secondary borrower annual salary = $23,280
Checking acct = $4,000
Savings acct = $18,000
Real estate taxes = $2,400/year
Insurance = $972/year
2002 Honda Civic; $6,500 value, $2,798 loan balance; pmts = $146/month
2007 Nissan Maxima; $11,000 value, $6,988 loan balance; pmts = $248/month
Personal property = $4,200 value
Rent = $650/month
Credit card #1 = $1,978
Credit card #2 = $748
Credit card #3 = 1,400
Credit card pmts = 2% of balance
Student loans = $18,000
Student loan pmt = 4% of balance
Utility bill average = $275/m
Car insurance = $845 every 6 months
Child care = $800/month
Credit score = 650; average
1) Calculate housing debt to income
2) Calculate total debt to income
3) Loan to value